Earlybird, a Berlin‑based VC, partners with Paris‑based AVP to raise a new defence fund targeting Europe’s security startups. The vehicle aims to close at €500 million, one of the largest venture pools for military and dual‑use tech since the war in Ukraine spurred demand. Funding commitments are expected by Q4 2026, with the first capital call slated for early 2027.

Europe’s defence budget has risen by roughly 15% annually, prompting governments to back private‑sector innovation. Earlybird contributes venture expertise, while AVP, rebranded from AXA Venture Partners, adds insurer capital and industrial contacts. The partnership aims to bridge early‑stage R&D with procurement pipelines, giving portfolio companies a clearer path to sizable contracts. The European defence venture market, estimated at €3 billion, remains fragmented, offering ample room for a sizable fund.

With €500 million on tap, the fund could finance dozens of startups developing AI‑driven targeting, autonomous platforms and secure communications. For investors, the vehicle offers exposure to a sector traditionally dominated by state spending, while European defence firms gain a pipeline of cutting‑edge tech. Earlybird projects a 3‑times multiple over ten years, based on historical exit rates in security tech. The fund’s launch signals a shift toward venture‑backed militarisation of the region.